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sick of nationals

Discussion in 'Commercial Snow Removal' started by grf_1000, Oct 25, 2010.

  1. grf_1000

    grf_1000 Senior Member
    Messages: 295

    I’m debating walking away from dealing with any sites that are run by a national. Mostly the payment schedules they have. I won’t see a dime till January. This is northern Michigan; by that time we will more than likely have more than 60” of snow fall. Not including any ice events. How do they expect anyone to survive? If it were down south where you might not even have 4” by the end of December that’s one thing but up here??? I know its budgeting but these accounts were just taken over by nationals this fall. I have had these accounts in the past and always was issued a payment end of November or beginning of December. This greatly helped. Yes these are seasonal contracts. I’m not a big company. I only run 8 trucks and 3 loaders. I don’t have a big bank roll.
    Any words of advice??
     
  2. Banksy

    Banksy PlowSite Veteran
    Messages: 3,113

    It may take a while for places like Lowes, etc to realize that they won't get the same quality with a big national. You get what ya pay for...


    I wish there was a driveway plowing market down here.
     
  3. grf_1000

    grf_1000 Senior Member
    Messages: 295

    this is a small city. Walmart,Walgreens, Rite-Aid and Lowes all went to nationals this year. i know they have been with nationals in other places for a while.
    i just dont know if its worth it to do these anymore for the money they offer for the contract. yes it is a 3 year contract so this winter would be the one to bite the bullet. its a good thing the property owner of office max/t.j. max still pays me direct.
     
  4. vt properties

    vt properties Senior Member
    from vermont
    Messages: 194

    Seems the payment schedules really put operators in a bind. I understand cash flow, it seems hard to turn payroll , insurance, payments, yard fees , gas ect... when you have to perform work with equitment and employes for months without seeing a dime to cover expenses. I guess the only way to do that is have other accounts that pay monthly or seasonal accounts. Bigger operations may have the budget and cash to operate like this. Good luck hope it works out for you.
     
  5. Camden

    Camden PlowSite Fanatic
    Messages: 6,598

    Get an operating line of credit from your bank. You only pay interest on the amount you use and the repayment schedule is usually flexible.

    A lot of companies tap into their credit line to make payroll during large projects.
     
  6. hoskm01

    hoskm01 Senior Member
    from AZ
    Messages: 475

    Pay the management company 4% for immediate payment, the check is overnighted to you. 4% is pretty cheap interest for immediate payment.
     
  7. TCLA

    TCLA 2000 Club Member
    Messages: 2,699

    It sounds as though they want you. And trust me ~ they need you.

    If you agree with the price they offer tell them the terms you need, or tell them to take a hike. Communicate to them you will stop the service if they fall behind by one day. You have hand....:nod:

    I know that area well. I feel bad for you, that you're put in this position...but if you are the only game in town (and you just might be) they will be in a real pinch without you.
     
    Last edited: Oct 25, 2010
  8. grf_1000

    grf_1000 Senior Member
    Messages: 295

    It’s not USM for Lowes or walgreens, no 4% offered. lol
    The prices were not what I wanted but were not too far off and it they are 3 year deals. Guaranteed work for 3 seasons is hard to pass up. I will talk with them to see about earlier payments or at least partial. If you figure pushing 5 feet of snow, over several storms, plus lake effect. With all the operating costs, it will be several thousand $$$.
    I sure miss the days when you dealt with store managers direct for contracts and payments.